CTEC Misinformation

[tilt]

I just returned from the IRS Vegas forum (took a few extra days). At the CTEC presentation, they said that "typists" (read data entry clerks) do not have to be registered. When I questioned them because of the August newsletter, they said the newsletter was in error. They did not bring up the error on their own, and when I commented that I apparently paid for a qualifying course for my "typist", the only response was "Sorry." Fat lot of good that does since I am now out the money and the clerk out his time. I just wanted to bring this to your attention.

Sandy

[Lion EA]

Sandy, I love your avatar. Where can I get it for my kids? (Your information was interesting, too, but since I'm not in CA, I concentrated on your avatar!)

[JRS]

For what its worth, the following is the text of the law as signed by our "beloved" governor:

(7) Existing law imposes specified requirements and prohibitions

on tax preparers, as defined, and exempts specified persons from

these requirements and prohibitions. A violation of those provisions

is a misdemeanor. Under existing law, those provisions will become

inoperative on July 1, 2008, and will be repealed on January 1, 2009.

This bill would extend the inoperative and repeal dates for these

provisions, making the provisions inoperative and repealing them on

January 1, 2012. The bill would also expand the category of persons

exempted from these provisions and revise the requirements for

exemption, including imposing a requirement that specified tax

returns are signed by a licensed accountant, attorney, or by a person

who is enrolled to practice before the Internal Revenue Service. The

bill would also specify that preparation of a tax return includes

the inputting of tax data into a computer. Because this bill would

impose additional qualifications on the exemption from tax preparer

provisions, the violation of which would be a crime, and would extend

the operation of existing crimes provisions, it would impose a

state-mandated local program.

I read that the orginal statement by CTEC is correct and someone decided, after numerous emails, that they were wrong. It needs clarification, which, as in the past, we will never see.

[jainen]

>>preparation of a tax return includes the inputting of tax data into a computer<<

Most data entry clerks do NOT have to register, because they are supervised by an attorney, CPA, or EA who will sign the returns. The only employees who must take the classes are those who do not have an attorney, CPA, or EA signing, such as employees of unlicensed preparers (i.e., registered with CTEC). But why would you not want your employees to know what they are doing? Sandy, it was money well-spent.